Tuesday's choppy session saw a shift in market trends as piping hot tech and artificial intelligence names that have largely led the market as of late pulled back while companies from the broader economy saw gains, CNBC's Jim Cramer said.

"When the market roared earlier today, it was all about the non-data center parts of the economy — the Rip Van Winkle economy that's been asleep for ages, frankly," he said.

The indexes seesawed on Tuesday as Wall Street digested commentary from Federal Reserve Chair Jerome Powell as well as news of escalating trade tensions between the U.S. and China.

President Donald Trump agitated investors towards the end of the day with a Truth Social post that said the U.S. is considering "terminating business with China having to do with Cooking Oil" in retaliation for Beijing refusing to buy U.S. soybeans.

The S&P 500 lost as much as 1.5% during the volatile session and gained 0.4% at its highs, eventually closing down 0.2%. The Dow Jones Industrial Average jumped nearly 1% at one point but managed to finish up 0.4%. The Nasdaq Composite closed down 0.8% after falling as much as 2.1% during the session.

Investors were encouraged Tuesday afternoon when Powell suggested the central bank might stop reducing the size of its bond holdings, Cramer said. Cramer said the Fed's bond selling has helped to keep mortgage rates higher than they should be, adding that the housing market can be a proxy for the economy outside of the tech world.

Cramer was impressed by big banks' earnings, especially strong results from Wells Fargo. He also pointed out that Builders FirstSource popped, suggesting the move could indicate that a better housing market is on the way. Retail home improvement names Home Depot and Lowe's also saw gains, he continued.

Cramer said he's "always liked a market that's led by the banks," and would prefer that this market ease up some of the data center and speculative names that have seen huge gains as of late.

"The bottom line is that this market's gotten way too hot all together," he said. "We could use a dose of the real economy. Today felt great before the president turned up the heat on China again—hopefully he'll take a more conciliatory tone and we'll bounce right back."

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Disclaimer The CNBC Investing Club holds shares of Wells Fargo and Home Depot.